CoreWeave shares slumped 15% on Wednesday and fell another 3% on Thursday, while the yield on its 2032 bonds rose to 15.77%. According to research firm Gartner, more than 80% of neocloud providers will cease independent operations by 2030 due to cost pressure and a lack of differentiating business model. The $8.5 trillion in revenue required to achieve a 12% return on capital compares to just $3.6 trillion in total data center spending forecast. CoreWeave, with a forward debt-to-equity ratio of 667-to-1, is viewed by many investors as a bellwether for the entire neocloud sector. The sell-off is spreading across the sector, with Nebius down 5%, IREN down nearly 9%, Applied Digital down 5.5%, Hut 8 down 8.4%, Terawulf down 3% and Cipher Digital down 6%.
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